The Game PlanNADOA North Dakota Seminar

April 11, 2012

2

Enerplus Assets

3

Detailed Williston Basin map

Williston

Sidney

Watford City

Elm Coulee Field

Ft. Berthold Indian Reservation

2

4

Elm Coulee Bakken Type Log

5

Hydraulic Fracturing

4

Fracturing fluid - The fluid used during a hydraulic fracture treatment of oil, gas, or water wells. The fracturing fluid has two major functions:

1.Open and extend the fracture. 2.Transport the proppant along the fracture length.

Proppant - Suspended particles in the fracturing fluid that are used to hold fractures open after a hydraulic fracturing treatment, thus producing a conductive pathway that fluids can easily flow along. Naturally occurring sand grains or artificial ceramic material are common proppants used.

6

Lateral Configuration 2000 - 2002First 17 Wells Completed as 5-1/2” Mono-Bores

Focus was on limited entry

• Four, 3’ perf clusters placed across drilling breaks and gas shows

• Typical perf density was 29 holes over 3,000’ of lateral in five groups

• Early perforating was done with TCP guns

• Perfs in the toe clusters were increased slightly assuming that the frac

would prefer to treat the heel due to higher treating pressures

• 30-35# X-linked Borate gels pumped at 45 BPM placing 390,000 # of

premium 20/40 resin coated proppant ramped up to 6 ppg

• RA tracers were run in to better understand proppant distribution

• Tracers indicated some heel treatment, however, frac preference seemed

to be towards the toe

9-5/8”

5-1/2”

7

Lateral Configuration 2002 - 2004

5-1/2”

• Continued to run 5-1/2” casing cemented from the curve to the base of the

9-5/8” surface casing

• Cementing was through a DV tool above an External Casing Packer

9-5/8”

8

Lateral Configuration 2004 - 2006

4-1/2” Liner

9-5/8”

7”

• Begin to run 7” intermediate casing cemented from the curve to the base

of the 9-5/8” surface casing

• Cementing was through a DV tool above an External Casing Packer

9

Lateral Configuration 2006-2007

• First attempt to use a single water swell packer in open hole to create two separate isolated compartments that could be fraced independently of each other.

– Mid-lateral to toe was pre-perforated and perforations were plugged with aluminum inserts that could later be knocked off with a bit prior to fracturing

– A composite bridge plug was then set inside the liner at mid-point followed by jet perforating from the mid-point to the heel prior to fracturing second stage

– Completion results were more encouraging

10

Sleeping Giant 2008-2009

• Progression to 2-3 water swell packers to break lateral in to 3-4 compartments (1,500-3,000’ in length)

– Pre-perforating mid-point to toe– Jet perforating mid-point to heel– Using ball sealers and benzoic acid flakes (BAF) for diversion– Later used fiber gel slugs in an attempt to create fluid diversion– Frac fluid systems were similar to pre-2008 jobs

11

Current Completion Design 2012

12

Double Barrel Ball Seats

Side view Front view

Ball Actuated Frac Sleeve

• Sleeves contain ball seats that are sequentially opened during the scheduled fracture treatments

• The ball serve two purposes:º Shift open the sleeveº Temporarily isolates previous stage/interval

• Locking device ensures the sleeve remains open

© 2009 Baker Hughes Incorporated. All Rights Reserved.13

Hydraulic Set Open-Hole Packer

• Used to isolate intervals to be fraced

• Set with differential pressure at the packer

© 2009 Baker Hughes Incorporated. All Rights Reserved.14

Swell Packer

• A self-energized swelling elastomeric packer that seals in open hole

• Built on a casing pup that matches the mechanical properties of the liner

• The packer element reacts with annular fluidº Water reactive elementº Oil reactive element

© 2009 Baker Hughes Incorporated. All Rights Reserved.15

16

Single Frac Stage Pumping Schedule for Ft. Berthold

Stage Fluid Rate Clean Proppant Proppant Proppant

Description Description Liquid + Prop Volume, gal Type Concentration Volume

Drop ball(s) 10# Water Frac 35 10,000

Pump-in Slickwater 10 1,000 0 0

Pre-pad 35# Linear gel 35 10,000 0 0

Pad 35# XL Borate (33) 35 12,000 0 0

Prop Laden Fluid 35# XL Borate (33 35 2,000 20/40 ceramic 0.25 500

Spacer 35# XL Borate (33 35 12,000 0 0

Prop Laden Fluid 35# XL Borate (33 35 2,000 20/40 ceramic 0.5 1,000

Spacer 35# XL Borate (33 35 12,000 0 0

Prop Laden Fluid 35# XL Borate (33 35 10,000 20/40 ceramic 1 10,000

Prop Laden Fluid 35# XL Borate (33 35 12,000 20/40 ceramic 2 24,000

Prop Laden Fluid 35# XL Borate (33 35 15,167 20/40 ceramic 3 45,500

Prop Laden Fluid 35# XL Borate (33 35 11,000 20/40 ceramic 4 44,000

Total 109,167 125,000

Note: Will seat frac ball(s) at 10-15 BPM

17

Dissolving Frac Balls

18

Frac Sleeve Demonstration at 40 BPM

19

Thank You!

Any questions?